William D. Campbell

Text (OCR of the scan at left; may contain errors)

IN THE MATTER OF WILLIAM D. CAMPBELL, JR., ET AL., TRADING AS RHODE ISLAND CARPETS CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 8946. Complaint, Dee. 7, 1973—Decision, Oct. 1. 1974 Consent order requiring a Mt. Rainier, Md., distributor and installer of carpeting and floor coverings, among other things to cease using bait and switch tactics: disparaging merchandise; misrepresenting sale prices; failing to maintain adequate records; misrepresenting the qualifications of its staff; failing to set forth contracts in the principal language used in sales presentations (cy, Spanish); and failing to inform customers of their right to a three-day cooling-off period during which they may cancel their contract with full refund rights. Further, respondent is required to place a notice in all future advertising that F.T.C. has found that they have engaged in bait and switch tactics.

Appearances For the Commission: Everette E. Thomas, Jerry W. Boykin and Thomas J. Keary.

For the respondents: Steny H. Hoyer, Hoyer & Fannon, District Heights, Md.

COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act, and by virtue of the authority vested in it by said Act, the Federal Trade Commission, having reason to believe that William D. Campbell, Jy. and Jack S. Owens, individually, trading and doing business as Rhode Island Carpets, hereinafter referred to as respondents, have violated the provisions of said Act, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues its complaint stating its charges in that respect as follows: PARAGRAPH 1. Respondents William D. Campbell, Jr., and Jack 58. Owens formulate, direct and control, and have cooperated and acted together in the performance of the acts and practices of the business which they have conducted and are conducting under the name Rhode Island Carpets including the acts and practices hereinafter set forth. Respondents’ principal office and place of business is located at 3315 Rhode Island Avenue, Mt. Rainier, Md.

Par. 2. Respondents are now, and for some time last past have been, engaged in the advertising, offering for sale, sale, distribution and Complaint od F.T.C.

installation of carpeting and floor coverings to the public. Par. 3. In the course and conduct of their business as aforesaid, respondents now cause, and for some time last past have caused, their said merchandise, when sold, to be shipped from their place of business located in the State of Maryland, to purchasers thereof located in various other States of the United States and the District of Columbia, and maintain and at all times mentioned herein have maintained, a substantial course of trade in said merchandise in commerce, as “commerce” is defined in the Federal Trade Commission Act. Par. 4. In the course and conduct of their aforesaid business, and for the purpose of inducing the purchase of their carpeting and floor coverings, the respondents have made, and are now making, numerous statements and representations by repeated advertisements inserted in newspapers of interstate circulation, by advertisements transmitted over television, and by oral statements and representations of their salesmen to prospective purchasers with respect to their products and services, Typical and illustrative of saict statements and representations, but not all-inclusive thereof, are the following: CARPET SALE FREE-SHOP AT HOME 3 Rooms DUPONT 501 NYLON DECORATOR SERVICE PILE installed wall-to-wall over separate waffle rubber padding FREE-HOOVER VACUUM UP TO 270 Sq. Ft. For $189 CLEANER EASY PAYMENTS TO FIT YOUR BUDGET 3 ROOMS OF FREE HOOVER VACUUM BEAUTIFUL NYLON CLEANER with the purchase PILE CARPET $119 of our deluxe NYLON DUPONT 501 CARPETING (90 Sq. Ft. Min.) Carpet pad, and installation for up to 270 Sq. ft.

Check our low, low discount prices on SHAG, PLUSHES, TIP SHEARS AND SCULPTUREDS! ees FREE * = * WATER BED with purchase of DUPONT 501 Our Deluxe Nylon Pile Carpeting* * * wee PASY TERMS! 535i Complaint Par. 5. By and through the use of the above-quoted statements and representations, and others of similar import and meaning but not expressly set forth herein, separately and in connection with the oral statements and representations of respondents’ salesmen to customers and prospective customers, the respondents have represented, and are now representing, directly or by implication, that: 1. Respondents are making a bona fide offer to sell the advertised carpeting and floor coverings at the price and on the terms and conditions stated in the advertisements.

2. By and through the use of the words, “SALE,” “LOW, LOW DISCOUNT PRICES,” and other words of similar import and meaning not set forth specifically herein, said respondents’ carpeting and floor coverings may be purchased at special or reduced prices, and purchasers are thereby afforded savings from respondents’ regular selling prices. 3. Purchasers of the said Dupont 501 Carpet receive a “free” vacuum cleaner or water bed.

4. By and through the use of the words “INCLUDING CARPET, PADDING, AND INSTALLATION?” and other words of similar import and meaning not set forth specifically herein, all of the carpeting mentioned in such advertisements is installed with separate padding included at the advertised price.

5. By and through the use of the words “DECORATOR SERVICE,” and other words of similar import and meaning not set forth specifically herein, respondents offer to the prospective customer the services of a trained and qualified interior decorator.

6. By and through the use of the words “EASY PAYMENTS” and “EASY TERMS,” purchasers of respondents’ products are granted easy credit terms, without regard to their financial status or ability to pay, by respondents or the financial institutions with which respondents deal.

Par. 6. In truth and in fact:

1. Respondents’ offers are not bona fide offers to sell carpeting and floor coverings at the price and on the terms and conditions stated in the advertisements. To the contrary, said offers are made for the purpose of obtaining leads to persons. interested in the purchase of carpeting. Members of the purchasing public who respond to said advertisements are called upon in their homes by respondents or their salesmen, who make no effort to sell to the prospective customer the advertised carpeting. Instead, they exhibit what they represent to be the advertised carpeting which, because of its poor appearance and condition, is. frequently rejected on sight by the prospective customer. Higher priced dds FEDERAL TRADE COMMISSION DECISIONS Complaint 84 FLTC.

carpeting or floor coverings of superior quality and texture are thereupon exhibited, which by comparison disparages and demeans the advertised carpeting. By these and other tactics, purchase of the advertised carpeting is discouraged, and respondents, through their salesmen, attempt to sell and frequently do sell the higher priced carpeting. 2. Respondents’ products are not being offered for sale at special or reduced prices. To the contrary, the price respondents regularly advertise and their so-called advertised “sale” or “discount” price are identical and are used to mislead prospective customers into believing there is a saving from a bona fide regular selling price. In fact, seldom, if ever, are the advertised items sold, because the offer is designed to act as the inducement for the practices set forth in Paragraph Six 1 above. 3. Purchasers of respondents’ Dupont 501 Carpet do not receive a free vacuum cleaner or free water bed. To the contrary, the cost of the “free” gift is added to and regularly included in the selling price of the merchandise sold to the customer.

4. A substantial portion of the carpeting advertised by the respondents is not installed with separate padding which is included in the advertised price. To the contrary, a substantial portion of the advertised carpeting has rubberized backing which is bonded to the carpeting: 5. Respondents do not employ or have available for their prospective customers a trained, qualified interior decorator. To the contrary, respondents and their regularly employed salesmen, who do not have any special training in the art of decorating, are utilized as “decorators.” 6. Purchasers of respondents’ products are not granted easy credit terms, without regard to their financial status or ability to pay, by respondents or the financial institutions with which respondents deal. Therefore, the statements and representations as set forth in Paragraphs Four and Five hereof were and are false, misleading and deceptive.

Par. 7.. By and through the use of respondents’ television advertisements containing the aforesaid statements and representations, and others of similar import and meaning but not expressly set forth herein, respondents offer three rooms of nylon pile carpeting (up to 270 sq. ft.) for $129. An additional 10 percent reduction in price is offered to purchasers of such carpeting who telephone respondents within five minutes after the commercial is aired. As a further inducement, respondents’ advertisements offer a “free” vacuum cleaner to purchasers of certain nylon pile carpeting. By the audio and visual manner in which the “free” gift is presented in immediate conjunction with the offer of the featured low price carpeting, respondents have represented, and are 555 ; Complaint now representing, directly or by implication, that purchasers of the low price carpeting are entitled to the “free” gift. Par. 8. In truth and in fact, the offer of the “free” gift does not apply to the purchase of the low price carpeting. To the contrary, the “free” gift applies only to the purchase of a much higher price carpeting to which the television advertisement makes only an inconspicuous and misleading reference.

Therefore, the acts and practices as set forth in Paragraph Seven hereof were and are false, misleading and deceptive. Par. 9. In the further course and conduct of their business, and in furtherance of a sales program for inducing the purchase of their carpeting and floor coverings, respondents and their salesmen or representatives have engaged in the following additional unfair, false, misleading and deceptive acts and practices:

In a substantial number of instances, through the use of the false, misleading and deceptive statements, representations and practices set forth in Paragraphs Four through Six, above, respondents or their representatives have been able to induce customers into signing a contract upon initial contact without giving the customer sufficient time to carefully consider the purchase and consequences thereof. Therefore, the acts and practices as set forth in Paragraph Seven hereof were and are unfair and false, misleading and deceptive acts and practices.

Par. 10. In the further course and conduct of their aforesaid business, and in connection with the representations set forth in Paragraph Four above, respondents offer carpet with padding and installation included at a price based upon specified areas of coverage. In making such offer, respondents have failed to disclose the material fact that the prices stated for such specified areas of coverage are not applied at the same rate for additional quantities of carpet needed, but are placed substantially higher. , The aforesaid failure of the respondents to disclose said material facts to purchasers has the tendency and capacity to lead and induce a substantial number of such persons into the understanding and belief that the prices charged for quantities of carpet needed in excess of the specified areas of coverage will not be substantially higher than the rate indicated by the initial offer.

Therefore, respondents’ failure to disclose such material facts was, and is, unfair, false, misleading and deceptive. Par. 11. In the course and conduct of their business, and for the purpose of inducing the purchase of their products, respondents use the £3602 Fe: FEDERAL ‘TRADE. comission: DECISIONS . nd Order eee cn e Hee al FC.

= 4 term‘ ‘up. to 270 eas i to indicate the quantity of canpeting a av ailable at S os the advertised price.

Sos accustomed to: comparing the price of carpet in-terms of price per - ~ Par. 12: The unit of measurement usually and ‘customarily employed ae ~ in’ the retail advertising of carpet” is. Square yards: Consumers are “square yard, therefore respondents’ use of the square. foot unit of. measurement confuses consumers who. compare | respondents’ prices | “swith: competitors’ prices advertised on a square yard basis. Furthermore, respondents use of square foot measurements exagperates the size or quantity of carpeting being offered, and therefore has the capacity and tendency to mislead consumers into the mistaken belief — they. are being offered a greater quantity of: carpet than is the fact. Therefore, the acts and practices as set forth in. Paragraph’ Eleven : her eof were and are unfair, false, misleading and deceptive. a Par. 13. In the course and conduct of their aforesaid business, anda at all times: mentioned herein; respondents have. been, andnow are; in substantial competition in commerce, with corporations, firms and individuals in the sale and distribution of rugs, carpeting and floor coverings ‘and services of the same general kind: and nature ‘as those sold by: - ~ respondents. :

Par.14. The use by respondents of. the aforesaid false, misleading and deceptive statements, representations, acts and practices has had ‘and now has, the capacity and tendency to mislead members of the purchasing public into the erroneous and mistaken belief that said — statements and representations were and are true and complete and into the pur rchase of substantial quantities of respondents’ products and services by reason of said.erroneous and mistaken belief. Par. 15. The aforesaid acts and practices of respondents, as herein alleged, were and are all to the prejudice and injury of the public and of respondents’ competitors and constituted, and now constitute, unfair methods of competition in commerce and unfair and deceptive acts and practices in commerce in violation of Section 5 of the Federal Trade Commission Act. :

DECISION AND ORDER “The Federal Trade Commission having issued a complaint char eing that the respondents named in the caption hereof have violated ‘the provisions of the Federal Trade Commission Act; and The Commission having duly determined upon motion submitted by complaint counsel and respondents that, in the circumstances presented, the public interest would be served by a withdrawal of the matter from 5D Decision and Order adjudication for the purpose of negotiating settlements by the entry of consent orders; and The respondents and counsel for the Commission having executed agreements each containing a consent order, an admission by the respondents of all the jurisdictional facts set forth in the complaint, a statement that the signing of said agreements are for settlement purposes only and do not constitute an admission by respondents that the law has been violated as alleged in the complaint, and waivers and other provisions as required by the Commission’s rules; and The Commission having considered the agreements and having provisionally accepted same, and the agreements each containing a consent order having thereupon been placed on the public record for a period of sixty (60) days, now in further conformity with the procedures described in Section 2.34(b) of its rules, the Commission hereby makes the following jurisdictional findings, and enters the following order: 1. Respondents William D. Campbell, Jr, and Jack S. Owens, are individuals, trading and doing business as Rhode Island Carpets with their office and place of business located at 3315 Rhode Island Ave., Mt. Rainier, Md.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents, and the proceeding is in the public interest.

ORDER I It is ordered, That respondents William D. Campbell, Jr., and Jack S. Owens, individually, trading and doing business as Rhode Island Carpets or under any other names, and respondents’ agents, representatives, and employees, directly or through any corporation, subsidiary, division or other device, in connection with the advertising, offering for sale, sale, distribution or installation of carpeting and floor coverings, or any other article of merchandise, in commerce, as “commerce” is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

1. Using, in any manner, a sales plan, scheme, or device wherein false, misleading, or deceptive statements or representations are made in order to obtain leads or prospects for the sale of carpeting or other merchandise or services.

2. Making representations, directly or indirectly, orally or in writing, purporting to offer merchandise for sale when the purpose of the representation is not to sell the offered merchandise but to Decision. and Order st F.T.C.

obtain leads or prospects for the sale of other merchandise at higher prices.

3. Disparaging in any manner, or discouraging the purchase of any merchandise or services which are advertised or offered for sale.

4. Representing, directly or indirectly, orally or in writing, that any merchandise or services are offered for sale when such offer is not a bona fide offer to sell such merchandise or services. 5. Failing to maintain and produce for inspection and copying for a period of three years following the date of publication of any advertisement, adequate records to document for the entire period during which each advertisement was run and for a period of six weeks after the termination of its publication in press or broadcast media:

a. The cost of publishing each advertisement including the preparation and dissemination thereof;

b. The volume of sales made of the advertised product or service at the advertised price; and ce. A computation of the net profit from the sales of each advertised product or service at the advertised price. 6. Using the words “Sale,” “Low, Low Discount Prices,” or any other word or words of similar import or meaning not set forth specifically herein, unless the price of such merchandise or service being offered for sale constitutes a reduction, in an amount not so insignificant as to be meaningless, from the actual bona fide price at which such merchandise or service was sold or offered for sale to the public on a regular basis by respondents for a reasonably substantial period of time in the recent, regular course of their business.

7. Representing, directly or indirectly, orally or in writing, that any price amount is respondents’ regular price for any article of merchandise or service unless said amount is the price at. which such merchandise or service has been sold or offered for sale by respondents for a reasonably substantial period of time in the recent, regular course of their business and not for the purpose of establishing fictitious higher prices upon which a deceptive comparison or a “free” or similar offer might be based. 8. Representing, directly or indirectly, orally or in writing, that a purchaser of respondents’ merchandise or services will receive a “free” vacuum cleaner or any other “free” merchandise, service, prize or award unless all conditions, obligations, or other prerequior Decision and Order sites to the receipt and retention of such merchandise, services, gifts, prizes or awards are clearly and conspicuously disclosed at the outset in close conjunction with the word “free” wherever it first appears in each advertisement or offer. 9. Representing, directly or indirectly, orally or in writing, that any merchandise or service is furnished “free” or at no cost to the purchaser of advertised merchandise or services, when, in fact, the cost of such merchandise or service is regularly included in the selling price of the advertised merchandise or service. 10. Representing, directly or indirectly, orally or in writing, that a “free” offer is being made in connection with the introduction of new merchandise or services offered for sale at a specified price unless the respondents expect, in good faith, to discontinue the offer after a limited time and commence selling such merchandise or service, separately, at the same price at which it was sold with a “free” offer.

11. Representing, directly or indirectly, orally or in writing, that merchandise or service is being offered “free” with the sale of merchandise or service which is usually sold at a price arrived at through bargaining, rather than at a regular price, or where there may be a regular price, but where other material factors such as quantity, quality, or size are arrived at through bargaining. 12. Representing, directly or indirectly, orally or in writing, that a “free” offer is available in a trade area for more than six (6) months in any twelve (12) month period. At least thirty (30) days shall elapse before another such “free” offer is made in the same trade area. No more than three such “free” offers shall be made in the same area in any twelve (12) month period. In such period, respondent’s sale in that area of the product or service in the amount, size or quality promoted with the “free” offer shall not exceed 50 percent of the total volume of its sales of the product or service, in the same amount, size or quality, in the area. 13. Representing, directly or indirectly, orally or in writing, that a product or service is being offered as a “gift,” “without charge,” “bonus,” or by other words or terms which tend to convey the impression to the consuming public that the article of merchandise or service is free, when the use of the term “free” in relation thereto is prohibited by the provisions of this order. 14. Representing, directly or indirectly, orally or in writing, that a stated price for carpeting or floor coverings includes the cost of a separate padding and the installation of such padding and carpeting Decision and Order 84 F.T.C.

thereof, unless in every instance where it is so represented the stated price for floor covering does, in fact, include the cost of such separate padding and installation thereof; or misrepresenting in any manner, the prices, terms, or conditions under which respondents supply separate padding and provide installation in connection with the sale of floor covering products. 15. Representing, directly or indirectly, orally or in writing, that respondents employ or have available for prospective customers a trained, qualified interior decorator; or misrepresenting in any manner, the training or qualifications of any of respondents’ employees, agents, or representatives.

16. Representing, directly or by implication, orally or in writing, that purchasers of respondents’ products are granted easy or assured credit terms by financial institutions with which respondents deal; or misrepresenting, in any manner, the amount, type, extent or any other facet of the credit terms respondents arrange or may arrange for their purchasers.

17. Contracting for any sale whether in the form of trade acceptance, conditional sales contract, promissory note, or otherwise which shall become binding on the buyer prior to midnight of the third day, excluding Sundays and legal holidays, after the date of execution. ;

18. Failing to furnish the buyer with a fully completed receipt or copy of any contract pertaining to such sale at the time of its execution, which is in the same language, e.g., Spanish, as that principally used in the oral sales presentation and which shows the date of the transaction and contains the name and address of the seller, and in immediate proximity to the space reserved in the contract for the signature of the buyer or on the front page of the receipt if a contract is not used and in bold face type of a minimum size of 10 points, a statement in substantially the following form: YOU, THE BUYER, MAY CANCEL THIS TRANSACTION AT ANY TIME PRIOR TO MIDNIGHT OF THE THIRD BUSINESS DAY AFTER THE DATE OF THIS TRANSACTION. SEE THE ATTACHED NOTICE OF CANCELLATION FORM FOR AN EXPLANATION OF THIS RIGHT.

19. Failing to furnish each buyer, at the time he signs the sales contract or otherwise agrees to buy consumer goods or services from the seller, a completed form in duplicate, captioned “NOTICE OF CANCELLATION,” which shall be attached to the contract or receipt and easily detachable, and which shall contain in ten point 555 Decision and Order bold face type the following information and statements in the same language, e.g., Spanish, as that used in the contract: NOTICE OF CANCELLATION {enter date of transaction] (Date) YOU MAY CANCEL THIS TRANSACTION, WITHOUT ANY PENALTY OR OBLI- GATION, WITHIN THREE BUSINESS DAYS FROM THE ABOVE DATE. IF YOU CANCEL, ANY PROPERTY TRADED IN, ANY PAYMENTS MADE BY YOU UNDER THE CONTRACT OR SALE, AND ANY NEGOTIABLE INSTRU- MENT EXECUTED BY YOU WILL BE RETURNED WITHIN 10 BUSINESS DAYS FOLLOWING RECEIPT BY THE SELLER OF YOUR CANCELLATION NOTICE, AND ANY SECURITY INTEREST ARISING OUT OF THE TRANSACTION WILL BE CANCELLED. .

IF YOU CANCEL, YOU MUST MAKE AVAILABLE TO THE SELLER AT YOUR RESIDENCE, IN SUBSTANTIALLY AS GOOD CONDITION AS WHEN RE- CEIVED, ANY GOODS DELIVERED TO YOU UNDER THIS CONTRACT OR SALE; OR YOU MAY IF YOU WISH, COMPLY WITH THE INSTRUCTIONS OF THE SELLER REGARDING THE RETURN SHIPMENT OF THE GOODS AT THE SELLER’S EXPENSE AND RISK.

IF YOU DO MAKE THE GOODS AVAILABLE TO THE SELLER AND THE SELLER DOES NOT PICK THEM UP WITHIN 20 DAYS OF THE DATE OF YOUR NOTICE OF CANCELLATION, YOU MAY RETAIN OR DISPOSE OF THE GOODS WITHOUT ANY FURTHER OBLIGATION. IF YOU FAIL TO MAKE THE GOODS AVAILABLE TO THE SELLER, OR IF YOU AGREE TO RETURN THE GOODS TO THE SELLER AND FAIL TO DO SO, THEN YOU REMAIN LIABLE FOR PER- FORMANCE OF ALL OBLIGATIONS UNDER THE CONTRACT. TO CANCEL THIS TRANSACTION, MAIL OR DELIVER A SIGNED AND DATED COPY OF THIS CANCELLATION NOTICE OR ANY OTHER WRITTEN NOTICE, OR SEND A TELEGRAM, TO (Name of seller] , AT {address of seller's place of business] NOT LATER THAN MIDNIGHT OF (date) , I HEREBY CANCEL THIS TRANSACTION.

——watesy — (Buyer's signature) 20. Failing, before furnishing copies of the “Notice of Cancellation” to the buyer, to complete both copies by entering the name of the seller, the address of the seller’s place of business, the date of the transaction, and the date, not earlier than the third business day following the date of the transaction, by which the buyer may give notice of cancellation.

21. Including in any sales contract or receipt any confession of judgment or any waiver of any of the rights to which the buyer is Decision and Order 84 F.T.C.

entitled under this order including specifically his right to cancel the sale in accordance with the provisions of this order. 22. Failing to inform each buyer orally, at the time he signs the contract or purchases the goods or services, of his right to cancel. _ 23. Misrepresenting, directly or indirectly, orally or in writing, the buyer’s right to cancel.

24, Failing or refusing to honor any valid notice of cancellation by a buyer and within 10 business days after the receipt of such notice, to (i) refund all payments made under the contract or sale; (ii) return any goods or property traded in, in substantially as good condition as when received by the seller; (iii) cancel and return any negotiable instrument executed by the buyer in connection with the contract or sale and take any action necessary or appropriate to terminate promptly any security interest created in the transaction.

25. Negotiating, transferring, selling or assigning any note or other evidence of indebtedness to a finance company or other third party prior to midnight of the fifth business day following the day the contract was signed or the goods or services were purchased. 26. Failing, within 10 business days of receipt of the buyer’s notice of cancellation, to notify him whether the seller intends to repossess or to abandon any shipped or delivered goods. 27. Advertising the price of carpet, either separately or with padding and installation included, for specified areas of coverage without disclosing in immediate conjunction and with equal prominence the square yard price for additional quantities of such carpet with padding and installation needed.

28. Advertising any carpeting or floor covering using a unit of measurement not usually and customarily employed in the retail advertising of carpet or which tends to exaggerate the size or quantity of carpeting or floor covering being offered at the advertised price.

Provided, however, That nothing contained in this order shall relieve respondents of any additional obligations respecting contracts required by Federal law or the law of the state in which the contract is made. When such obligations are inconsistent, respondents can apply to the Commission for relief from this provision with respect to contracts executed in the state in which such different obligations are required. The Commission, upon showing, shall make such modifications as may be warranted in the premises.

555 Decision and Order It is further ordered, That the respondents forthwith cease and desist from dissemination, or causing the dissemination of, any advertisement of merchandise except advertising in connection with respondent Campbell’s operation of a retail liquor store, by:means of newspapers, or other printed media, television or radio, or by any means in commerce, as “ecommerce” is defined in the Federal Trade Commission Act, unless respondents clearly and conspicuously disclose in each advertisement the following notice set off from the text of the advertisement by a black border:

The Federal Trade Commission has found that we engage in bait and switch advertising; that is, the salesman makes it difficult to buy the advertised product and he attempts to switch you to a higher priced item.

One year from the date this order becomes final or any time thereafter, respondents upon showing that they have discontinued the practices prohibited by this order and that the notice provision is no longer necessary to prevent the continuance of such practices may petition the Commission to waive compliance with this order provision. It is further ordered, That respondents shall maintain for at least a one (1) year period, following the effective date of this order, copies of all advertisements, including newspaper, radio and television aclvertisements, direct mail and in-store solicitation literature, and any other such promotional material utilized for the purpose of obtaining leads for the sale of carpeting or floor coverings, or utilized in the advertising, promotion or sale of carpeting or floor coverings and other merchandise. It is further ordered, That respondents, for a period of one (1) year from the effective date of this order, shall provide each advertising agency utilized by respondents and each newspaper publishing company, television or radio station or other advertising media which is utilized by the respondents to obtain leads for the sale of carpeting or floor coverings and other merchandise, with a copy of the Commission’s news release setting forth the terms of this order. It is further ordered, That respondents deliver a copy of this order to cease and desist to all present and future personnel of respondents engaged in the offering for sale, sale of any product, consummation of any extension of consumer credit or in any aspect of preparation, creation, or placing of adv ertising, and that respondents secure a signed statement acknowledging receipt of said order from each such person. It is further ordered, That the individual respondents, William D. Campbell, Jr., and Jack S. Owens promptly notify the Commission of the . discontinuance of their present business or employment and of their affiliation with a new business or employment. Such notice shall include 575-956 O-LT - 76 --37 Decision and Order 34 F.T.c.

respondents’ current business addresses and a statement as to the nature of the business or employment in which they are engaged as well as a description of their duties and responsibilities. It is further ordered, That the respondents herein shall within sixty (60) days after service upon it of this order, file with the Commission a report, in writing, setting forth in detail the manner and form in which it has complied with this order.